If Actual Output Exceeds Potential Output for a Prolonged Period

Multiple Choice

If actual output exceeds potential output for a prolonged period of time, we would eventually expect factor prices to:

A) rise, causing the SAS curve to shift up (to the left) .
B) fall, causing the SAS curve to shift down (to the right) .
C) rise, causing the LAS curve to shift out to the right.
D) fall, causing the LAS curve to shift in to the left.